Natural Gas and Oil Forecast: NG Bullish Run Slows; Next Target $2? - FX Empire
Natural Gas and Oil Forecast: NG Bullish Run Slows; Next Target $2? | FXEmpire
Oil prices softened in the early hours of Thursday, as unexpected surges in U.S. crude inventories raised concerns over sluggish demand and the potential for prolonged high U.S. interest rates, which could dampen economic growth and reduce oil consumption.
The build-up in crude stockpiles, reported by the EIA, suggests a decrease in refining activity due to various outages. Analyst expectations were exceeded as crude inventories swelled for the fifth week.
Natural Gas (NG) is trading at $1.881, down 0.79% from the previous session. The current pivot point for NG stands at $1.8651. Looking at resistance levels, NG faces immediate challenges at $1.9291, with further hurdles at $1.9871 and $2.0470.
On the downside, initial support lies at $1.7983, with subsequent floors at $1.7257 and $1.6773. The 50-day EMA is at $1.7930, providing near-term technical support, while the 200-day EMA at $2.0047 suggests a longer-term resistance level.
The overall trend for NG is bullish above the pivot of $1.8651, indicating a potential for further gains if this level holds. Conversely, a drop below this pivot could signal a shift to a bearish outlook.
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.
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